Light Industrial Manufacturing
For Sale
$14,000,000
1953 Mercer Road, Lexington, KY 40511
Manufacturing facility on 13.976 acres with four docks, two grade-level doors, and 100% climate-controlled space.
Property Size178,379 SF
Lot Size13.98 Acres
Price / SF$78.48
Days on Market85
Property Features for 1953 Mercer Road
General Information
Standard status
Active
Size
178,379 SF
Lot size
13.98 Acres
Property subtype
Industrial
Zoning
I-1
Warehouse & Industrial
Clear Height
18 ft
Dock-High Doors
4
Drive-In Doors
2
Heavy Power
Yes
Sprinkler System
Yes
Additional Details
Highway Access
Yes
Building Details
Year Built
1964
Listing Agency:
(859) 433-8911
Listed By:
John Bunch, SIOR
(859) 433-8911
Source:
Svn
Added: May 14
Changed: Jul 22
Last Checked: Aug 6 at 3:59AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of John Bunch, SIOR
Investment Insights
Based on property information with market context.
1953 Mercer Road is a manufacturing facility totaling 178,379 SF on 13.976 acres, zoned I-1 (Light Industrial). The facility is equipped with four docks and two grade-level drive-in doors. The building features heavy three-phase power, 100% climate-controlled interior space, an 18’ clear height, and approximately 40’ x 40’ column spacing. A wet sprinkler system is installed throughout.
The property is described as being located in the heart of the Lexington, Kentucky industrial corridor, with access to major interstate travel within 3.5 miles to I-75/I-64.
The configuration supports typical industrial distribution and manufacturing operations with loading via four docks and drive-in access through two grade-level doors.
The property is described as being located in the heart of the Lexington, Kentucky industrial corridor, with access to major interstate travel within 3.5 miles to I-75/I-64.
The configuration supports typical industrial distribution and manufacturing operations with loading via four docks and drive-in access through two grade-level doors.
Key Highlights
- 178,379 SF manufacturing facility on 13.976 acres in Lexington’s industrial corridor
- Zoned I‑1 (Light Industrial) manufacturing space
- 4 docks and 2 grade‑level drive‑in doors
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$1,056,360
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.55%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$21,127,200
$21.1M
Cap Rate 7%
$15,090,857
$15.1M
Cap Rate 9%
$11,737,333
$11.7M
Market Conditions
NOI Build-Up for 178,379 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$1.61M $9.00/SF
− Vacancy
−$96.3K −$0.54/SF
EGI
$1.51M $8.46/SF
− OpEx
−$452.7K −$2.54/SF
NOI
$1.06M $5.92/SF
Area
ZIP 40511
Vacancy
6.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$21,127,200
Cap Rate 7%
$15,090,857
Cap Rate 9%
$11,737,333
Alternative Uses
Best Use
Industrial
$15.09M
$13.20M – $17.61M
NOI $1,056,360 @ 7.0% cap · market cap 7.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$36.99M
$32.37M – $43.15M
NOI $2,589,207 @ 7.0% cap · market cap 18.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
18 ft
Clear height
4
Dock-high doors
2
Drive-in doors
Yes
Heavy power
Yes
Sprinkler system
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
252
Businesses Nearby
Explore this area
Business Placement
Demographics for 40511, KY
36,146
Population
14,963
Households
2.4
Avg Household Size
35
Median Age
38%
College-Educated
89%
High-School Grad
86.0 sq mi
ZIP Area
420
Density / Sq Mi
$77,476
Median Household Income
$43,416
Median Earnings
$1,159
Median Rent
$233,400
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Manufacturing property - Manufacturing facility on 13.976 acres with four docks, two grade-level doors, and 100% climate-controlled space.
Where is this manufacturing property located?
The property is located at 1953 Mercer Road Lexington, KY.
What is the asking price?
The asking price for this property is $14,000,000.
What are key features of this property?
This property features: 178,379 SF manufacturing facility on 13.976 acres in Lexington’s industrial corridor; Zoned I‑1 (Light Industrial) manufacturing space; 4 docks and 2 grade‑level drive‑in doors
